Which of the following expenses is not classified as a capital expenditure?

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Purchasing a new assetExpanding the capacity of an existing assetEnhancing the functionality of an assetRoutine upkeep of an assetNone of the above

Explanation

Capital expenditures include costs related to acquiring, extending, or improving assets to increase their value or usefulness. However, routine maintenance or repairs, which preserve the asset's current condition without enhancing its value, are considered revenue expenses and not capital expenditures.